Stock TiVo strengthen after win patent
Economic News Today about A federal appeals court affirmed on Thursday a contempt finding against Dish Network Corp and EchoStar Corp in their long-running patent case against digital video recorder maker TiVo Inc, sending TiVo shares soaring 52 percent. The U.S. District Court for Eastern Texas had previously imposed contempt sanctions against sister companies Dish and EchoStar for violating a court-ordered permanent injunction to stop making and selling DVRs. TiVo’s options volume heated up to 14 times the norm in afternoon trading. In all, about 191,000 calls and 75,000 puts had traded, according to option analytics firm Trade Alert.TiVo said it was pleased with the appeals court ruling, and said it paves the way for the company to receive $300 million in damages and contempt sanctions awarded to it for EchoStar’s infringement through July 1, 2009.TiVo said it plans to seek further damages and contempt sanctions for infringement after July 1.Dish and EchoStar said their DVR customers are not affected by the ruling, and said they will propose “new design-around” DVR technology to the district court for approval.Shares of Alviso, California-based TiVo were up 52 percent at $15.52 in afternoon trading on the Nasdaq. Shares of Dish Network were down 4.4 percent at $20.75.The case is TiVo Inc vs Echostar Corporation, Case No. 2009-1374, United States Court of Appeals for the Federal Circuit.
